Casino vision blurs

By James M. Odato and Tim O'Brien

Updated 7:01 am, Friday, May 30, 2014

Exit 23 casino proposal.
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Exit 23 casino proposal.

Marlin Anderson of Albany speaks in favor of the idea of a casino in Albany as the Albany Common Council begins consideration of the proposal to build a casino off exit 23 in Albany during a meeting at City Hall April 7, 2014 in Albany, N.Y. (Lori Van Buren / Times Union)

Casino developer David Flaum briefs members of the Albany Common Council on an Albany-based casino and resort at Exit 23 on the Thruway Friday, March 21, 2014, at City Hall in Albany, N.Y. (John Carl D’Annibale / Times Union)

Casino developer David Flaum briefs members of the Albany Common...

Marlin Anderson of Albany speaks in favor of the idea of a casino in Albany as the Albany Common Council begins consideration of the proposal to build a casino off exit 23 in Albany during a meeting at City Hall April 7, 2014 in Albany, N.Y. (Lori Van Buren / Times Union)

The $300 million to $400 million vision of a multifaceted casino project near Exit 23 of the Thruway may be scaled back because of development constraints, Albany Common Council members said.

The elected officials said about half the acreage proposed for a casino, hotel, water park and equestrian center is not suited for construction.

"We were told 17 of the 30 acres initially discussed are developable," said Carolyn McLaughlin, council president. "So that would mean ... more than likely we're not going to see a water park or equestrian park. A hotel and a casino will be the only thing."

McLaughlin said the information about building restrictions on the Noonan Lane property came from the city's legal consultant, who has been negotiating with representatives of the development team: Flaum Management of Rochester, Capital District Off-Track Betting Corp. and an arm of the Chickasaw Nation of Oklahoma, a gaming tribe that would run the casino.

"We learned that we can take Flaum's presentation and throw it out the window," said Council Member Judd Krasher. "It is meaningless."

Flaum contested the consultant's analysis on Thursday.

"There is more than enough acreage on our site to build our vision for E23," Flaum said. He said the Chickasaw Nation's commercial gaming arm, Global Gaming Solutions, has been on board for a less than a month and the team has been working diligently to respond to the state Gaming Commission's June 30 deadline for the completion of casino license applications. "We are moving forward with E23 and submitting a winning proposal," he said.

He said the team desires input from city leaders and will be making an announcement with details soon. A spokesman for the project, Patrick McCarthy, said 60 acres in Flaum's control are in good shape for construction.

Mayor Kathy Sheehan was unavailable for comment. But her chief of staff, Matt Peter, said consultant Jonathan Silverstein met with leaders on Wednesday before the Common Council's meeting to discuss the Exit 23 casino site. He said Silverstein raised concerns about whether the site can be fully developed.

"What that means for the proposal, we don't know," he said. "I don't want to get involved in the speculation."

The Flaum team, probably with its casino operator, is expected to make a presentation to the Common Council next week, council members said.

As for the disclosure on Thursday that the Thruway Authority intends to build a new combined headquarters with the Department of Transportation next to the casino project site, McCarthy said that could be a positive development. Other gaming industry officials say the transportation headquarters project adds complications to building a casino in close proximity to another work zone.

McLaughlin agreed with McCarthy that the state project could lead to better traffic flow planning and congestion mediation, helping the project.

Site problems are not the Flaum team's only possible barriers: The Bethlehem Town Board voted on Wednesday against the E23 project, which would be sited close to the town border.

A host community support resolution is essential to a casino license, meaning the most important vote is that of the Albany Common Council. However, the state Gaming Commission's siting board also has said 20 percent of the bid rating will be based on local impact, including opposition and backing, and that it will weigh community responses.

The board will consider concerns of the host municipality, nearby local governments and other entities — such as charities, entertainment venues and religious, labor, business and civic groups.

"It is the sense of the town board of the Town of Bethlehem that our community is opposed to the E-23 Casino Proposal, as well as to other casino proposals within the Capital Region," the resolution passed by the board said. "We are concerned with the welfare of the entire community, the impact on citizens, and we question the long-term economic and fiscal benefit of such ventures. And we intend to reach out to other municipalities, including the city of Albany, and neighboring towns and cities, to see if they too would become involved in this public debate."

The board proposed "a regional dialogue" on other ways to develop the economy to serve communities for the long term.

McLaughlin said the resolution is insulting because it is worded to suggest that Albany leaders cannot evaluate economic development opportunities on their own. "We will make our decision on what is the best for the city of Albany and not for Bethlehem or any other surrounding community," she said.

As many as five bidders are expect to compete for a casino license in the Capital Region.